to Marcus & Millichap compilations.
International visitors, meanwhile, are
expected to partially offset that decline,
thereby supporting demand for retail
space, particularly in Miami Beach and
South Beach. Asking rents are forecast
to reach $25.45 per sf, a hike of 3.5%.
Similarly, effective rents are on track to
move up 3.4%, landing at $23.01 a sf by
Untenanted industrial footage is on
the rise in the Miami-Dade area. Since
the fourth quarter of last year, some 4. 8
million sf has been added to the market,
mostly due to Centergate at Gratigny, a
978,000-sf distribution and operations
facility that was leased in the spring but
vacated soon after, reports CB Richard
Ellis. That caused an absorption total of
negative 2. 2 million sf and a rise in
vacancy from 4.2% in Q4 ’06 to 5.9%
when 2007 ended.—Maria Wood
that the CBD and suburban vacancy
rate has gone up from 6.5% and 7.8%,
respectively, at year-end 2006, to 9.4%
and 8.9% in 2007. And absorption went
from a record-breaking two million sf
over the year to 595,214 sf, mainly due
to 673,684 sf of sublease space returned
to the supply in 2007.
Lease rates, meanwhile, increased by
$1.90 per sf for Downtown class A
space to $28.06, while class A suburban
rents ended the year at $22.44 a foot, a
$1.54 uptick, CBRE reports.
Although office rental rates are
expected to increase moderately over
the year to compensate for higher oper-
APRIL 29, 2008
Marriott Marquis New York
The Premier Event
for the Net Lease,
1031 & TIC
How will the changing debt and equity markets impact deal
flow, and overall investment sales activity, in 2008 and beyond?
ALTHOUGH IT HASN’T BEEN HIT AS HARD
as other parts of the state, Orlando is
certainly feeling the effects of the residential housing slump. The fallout in
the condominium market and competition from failed condo projects and
other shadow space is expected to have
a negative impact on the market’s apartment sector.
Marcus & Millichap anticipates local
multifamily vacancy to rise 80 basis
points this year to 8.1%. Class A units
will likely underperform, while the B
and C segment should benefit from a
return of former homeowners to the
rental pool. As a result, the firm expects
asking rents to go up 2% this year to
$899 per month, with much of the
growth in B and C properties.
Concessions, however, will bring effective rent growth to a mere 0.3%.
The sagging residential market is also
hurting the office sector, as many homebuilders and mortgage and title firms
close up shop and add sublease space to
the market. CB Richard Ellis reports
The Numbers Behind the Trends
Town Hall Meeting: State of the Net Lease Market
Capital Markets in Today’s Environment
Green Outlook: The Greening of Corporate Real Estate
Net Lease Market Fact or Fiction
1031 Exchange Market Trends for Net Lease & TIC Investments
The Sale-Leaseback Market: Source for Optimism?
Spectrus Real Estate Group
Lexington Realty Trust
Marcus & Millichap
U.S. Realty Advisors, LLC
W.P. Carey & Co.
First Industrial Realty Trust
For General Information:
Brian Klebash 917-464-0363
For Sponsorship Information:
Richard Kelley 212-929-7105
REGISTER TODAY: www.realshareconferences.com/netlease